Casella Waste Systems (CWST) 46th Annual William Blair Growth Stock Conference summary

Business overview and growth strategy

• Operates as an integrated solid waste and recycling company across 15 states, with a focus on the Northeast and Mid-Atlantic regions.

• Achieved consistent growth over the past decade, with 19% CAGR in revenue, 20% in EBITDA, and 21% in free cash flow.

• Growth is balanced between organic initiatives and acquisitions, with $150 million in acquired revenues year-to-date and a $1 billion acquisition pipeline.

• Five core strategies include profitability in collection, landfill returns, Resource Solutions differentiation, circularity, and focused capital allocation.

• Over 80 acquisitions in six years, emphasizing operational consolidation and market efficiency.

Landfill capacity, pricing, and expansion

• Northeast landfill capacity is declining, driving up disposal prices and increasing reliance on rail to export waste.

• Permitting new landfill capacity is extremely challenging, with only one new greenfield landfill in 35 years.

• Multiple large Northeast landfills are expected to close in the next five years, tightening the market further.

• Two major landfill expansions in New York (Hakes and Highland) are expected to complete by late 2026, more than doubling annual capacity.

• Rail-served landfill in Pennsylvania recently brought online, enhancing vertical integration and market access.

Volume trends and operational efficiency

• Q1 volumes were impacted by severe weather, with strong C&D landfill growth but softness in transfer stations and roll-off.

• Slightly negative volumes in collection due to acquisition-related customer churn and route consolidation.

• New Chief Revenue Officer and customer-facing technology initiatives aim to improve retention and volume outcomes.